Correlation Between Performa Real and CSHG Real
Can any of the company-specific risk be diversified away by investing in both Performa Real and CSHG Real at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Performa Real and CSHG Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performa Real Estate and CSHG Real Estate, you can compare the effects of market volatilities on Performa Real and CSHG Real and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Performa Real with a short position of CSHG Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performa Real and CSHG Real.
Diversification Opportunities for Performa Real and CSHG Real
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Performa and CSHG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Performa Real Estate and CSHG Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSHG Real Estate and Performa Real is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Performa Real Estate are associated (or correlated) with CSHG Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSHG Real Estate has no effect on the direction of Performa Real i.e., Performa Real and CSHG Real go up and down completely randomly.
Pair Corralation between Performa Real and CSHG Real
Assuming the 90 days trading horizon Performa Real Estate is expected to under-perform the CSHG Real. In addition to that, Performa Real is 5.31 times more volatile than CSHG Real Estate. It trades about -0.2 of its total potential returns per unit of risk. CSHG Real Estate is currently generating about -0.1 per unit of volatility. If you would invest 10,562 in CSHG Real Estate on August 27, 2024 and sell it today you would lose (163.00) from holding CSHG Real Estate or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Performa Real Estate vs. CSHG Real Estate
Performance |
| Timeline |
| Performa Real Estate |
| CSHG Real Estate |
Performa Real and CSHG Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performa Real and CSHG Real
The main advantage of trading using opposite Performa Real and CSHG Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performa Real position performs unexpectedly, CSHG Real can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSHG Real will offset losses from the drop in CSHG Real's long position.| Performa Real vs. BTG Pactual Logstica | Performa Real vs. Plano Plano Desenvolvimento | Performa Real vs. Companhia Habitasul de | Performa Real vs. The Procter Gamble |
| CSHG Real vs. SDI Logstica Rio | CSHG Real vs. Af Invest Cri | CSHG Real vs. Legatus Shoppings Fundo | CSHG Real vs. Valora Re III |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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